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Managing Growth, Managing Change East Midlands Regional Housing Strategy 2008 - 2016 November 2008 Contents Chapters 1 The Challenge 4 2 Role and Structure of the RHS 2008 - 2016 9 3 Implementation of the RHS 2004 - 10 17 4 Analysis of Strategic Housing Market Assessments (SHMAs) 18 5 Affordability, and access to housing 30 6 Housing's Contribution to Economic Development 53 7 Design quality and sustainable homes 60 8 Sustainable and cohesive communities 74 9 Rural housing 81 10 Housing for vulnerable people 85 11 Planning for an ageing population 96 12 Implementation, Monitoring and Review 101 Appendices Appendix 1 Sustainability Appraisal 103 Appendix 2 Useful Statistics 105 Appendix 3 Bibliography 110 Appendix 4 Glossary 112 East Midlands Regional Assembly | Managing Growth, Managing Change 1 . The Challenge 1.1 "Managing Growth, Managing Change" is the East Midlands Regional Housing Strategy 2008 - 16. 1.2 The East Midlands is growing - fast. It is the fastest growing Region in England. Recent projections from the Office of National Statistics indicate that the population of the Region will increase from 4.3 million in 2006 to 4.8 million in 2016 (an increase of 11%) and then to 5.5 million by 2031. Between 2001 and 2016 we can expect the number of ‘households’ requiring accommodation to rise from 1.7 million to just under 2.1 million – an increase of almost 20%. Figure 1.1 Percentage Population Increase 2006 - 2031 by Region (ONS) 1.3 About a third of this projected growth is the result of changes in the existing population - in particular people living longer, living alone or in smaller family units. However the rest results from in-migration: some from abroad, but the majority from other parts of England - particularly London and the wider south east. (See Map 1.1). 4 East Midlands Regional Assembly | Managing Growth, Managing Change 1 . The Challenge Map 1.1 Net Average Migration 2001-05 between the East Midlands Housing Market Areas and the English Regions 1.4 The attractiveness of the East Midlands to potential in-migrants reflects a positive view of the Region by existing residents. Repeated MORI poll survey data suggests that around 89% of people in the Region believe that their quality of life is either ’very’ or ‘fairly’ good. 1.5 However this success brings its own challenges – quite literally ‘growing pains’. The pace of change in some parts of the East Midlands is staggering. For instance in Northamptonshire, which is part of the MKSM Growth Area, the total number of dwellings is set to rise by almost 30% between 2001 and 2016. Similar levels of growth are happening in other parts of the region notably the Eastern sub-region. The growing numbers, greater diversity and changing demography all impose challenges for infrastructure, services and community cohesion. 1.6 Everywhere in the East Midlands there is an affordability problem, as the gap between wage rates and house prices widens - even in former industrial areas where the housing market was flat or declining just a few years ago. The current ‘credit crunch’ may start to depress demand,but major structural imbalances remain. This is despite the fact that housing completions have risen significantly over the last five years and the amount of public money invested in new affordable housing has also been increasing. 1.7 The slow-down in housing delivery and development brought about by the international “credit crunch” and changed lending behaviour presents a real challenge. It could change the shape of affordable housing delivery as Registered Social Landlords (RSLs) are invited to purchase unsold private sector stock. This could increase the short-term delivery of East Midlands Regional Assembly | Managing Growth, Managing Change 5 1 . The Challenge affordable housing. It could also result in a reduction in house prices and associated easing of affordability problems. However, the difficulty in obtaining mortgage finance means that people's ability to purchase is not improving significantly. 1.8 In the longer-term it presents a real risk to housing supply. It will have an impact on stretched mortgagors and subsequent risk of homelessness. The private rented sector and intermediate housing products may need to play an increasingly important role in the short to medium-term as more people are unable to obtain mortgages or lose their homes due to an inability to make repayments. 1.9 There is a clear threat to the overall delivery of both private-sale and affordable housing - in other words, a threat to growth. The contribution which private sector funding makes to the delivery of affordable housing is under threat as sites are put on hold. It is too early to assess the impact of the Government's September 2008 rescue package but it is important to ensure that the region takes every opportunity arising from it. Meanwhile, it remains important that the region sends a clear message to central government that current funding is not adequate and more resources are needed to provide more affordable homes directly. 1.10 Like other regions, the East Midlands is also experiencing rising fuel prices which will dramatically increase the number of people in fuel poverty and exacerbate the difficulties of reducing costs for households in new and existing properties. 1.11 Tackling climate change is possibly the single most urgent priority facing us all. It is an issue that has to be addressed globally, nationally and locally. The RHS sets out ways in which it can contribute to mitigation and adaptation – helping to reduce domestic emissions by improving the thermal efficiency of existing homes, supporting home improvement and advice services to tenants and residents on reducing energy use; and building new homes to much higher thermal standards. 1.12 The Regional Housing Strategy (RHS) cannot attempt to address all the challenges of a growing region. The Regional Spatial Strategy, the Regional Economic Strategy and the wider policies and programmes of central Government are all of crucial importance. But the RHS can play a key role in influencing the future shape of the Region’s housing stock, and helping it to meet the needs of this and future generations. The regional priorities of the Homes and Communities Agency will be of particular importance and early confirmation of how the HCA plans to deliver its responsibilities regarding growth, renewal, affordability and sustainability will be welcome. To play an effective influencing role, the RHS provides a clear list of actions. This has been challenging in a diverse region like the East Midlands, where so many different needs are competing for attention. 1.13 Over the next few years, the current framework of regional institutions and strategies will change as a result of the Government’s ‘Sub-National Review of Economic Development and Regeneration’ (SNR). It is likely that this will be the last Regional Housing Strategy in its present form, and that in future housing issues will form part of a wider ‘Single Regional Strategy’ to be introduced following legislation in 2010. However, these changes only re-enforce the importance of setting a out clear housing agenda for the East Midlands, to address the challenges we have now and to contribute to the development of new regional arrangements. 6 East Midlands Regional Assembly | Managing Growth, Managing Change 1 . The Challenge Meeting the Challenge 1.14 The Regional Housing Strategy is based on the following simple, aspirational vision: “To help create sustainable communities in which the housing needs and choices of all the people of the East Midlands can be met at a price they can afford". 1.15 Within this Vision, the RHS sets out 6 Key themes, supported by objectives, policies, and an Action Plan. Delivering the Strategy and realising the Vision will take concerted action from a wide range of national, regional and local bodies in both the public and private sectors. Vision 6 Key Themes: Affordability & Design Quality Sustainable & Rural Housing for Planning for Access to & Cohesive Housing Vulnerable an Ageing Housing Sustainable Communities People Population Homes Objectives & Policies Action Plan 1.16 The objectives are: Objective 1: To ensure that regional housing and planning policy are informed by a robust understanding of need and housing market conditions in the region. Objective 2: To ensure that everyone in the region is able to both access and afford suitable housing to meet their needs. Objective 3: To improve the co-ordination of housing’s contribution to economic development within the region. Objective 4: To contribute to raising the quality of design in housing, and the creation of sustainable homes. Objective 5: To develop a framework within which regional and local partners can develop sustainable and cohesive communities. Objective 6: To ensure that rural affordable housing need is correctly addressed through the Regional Affordable Housing Programme. Objective 7: To improve the co-ordination of provision which meets the housing needs of vulnerable people. Objective 8: To ensure the region provides a robust response to the housing implications of our ageing population. East Midlands Regional Assembly | Managing Growth, Managing Change 7 1 . The Challenge 1.17 This Regional Housing Strategy (RHS) has been developed by the East Midlands Regional Assembly’s Regional Housing Group (RHG). 1.18 The evidence base which underpins the RHS and informs regional housing policy can be viewed at www.emra.gov.uk. It will be kept under regular review within the future regional policy context. 8 East Midlands Regional Assembly | Managing Growth, Managing Change 2 . Role and Structure of the RHS 2008 - 2016 Role of the RHS 2.1 The role of the RHS is to set out a vision for housing in the East Midlands and to provide public sector and private sector stakeholders with a common framework which helps them to deliver better housing for the people of the region.

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